Mailers’ Technical Advisory Committee Meeting August 1, 2007
description
Transcript of Mailers’ Technical Advisory Committee Meeting August 1, 2007
®
H. Glen WalkerChief Financial Officer &Executive Vice President
FINANCIAL UPDATE
Mailers’ Technical Advisory Committee Meeting
August 1, 2007
FINANCIAL UPDATE
+0.2%161.5BTotal All Mail
-0.3%879MPackage Svc.-2.4%696MPriority-1.3%42MExpress
-2.7%6.7BPeriodicals+1.8%78.3BStandard-1.3%73.4BFirst-Class
SPLYChange
Qtr 3YTD
-1.3%
+0.8%-2.8%-0.5%
-0.5%-0.9%-1.3%
51.4B
258M215M
14M
2.3B24.6B23.6B
Qtr 3SPLY
Change
Volume Performance
FINANCIAL UPDATE First-Class Mail Volume
2.1%
-1.3%
1.2%-0.1%
-1.3%-0.6%
0.3%
-4.0%
1.6%
-0.8%
-2.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Priority Mail Volume
2.5%
6.1%4.7%
0.7% 0.7%2.6%
-2.8%
-5.3%
1.4%
10.3%
7.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Express Mail Volume
4.0%5.7%
-3.3% -3.1%
0.6%1.3%
-0.5%-0.2%-0.9%
2.2%4.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Periodicals Volume
-3.3%
0.1%
-5.3%
-1.8%
0.9%
-0.7% -0.5%
-2.2%
-0.6%
0.3%0.2%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Standard Mail Volume
9.3%
4.1% 4.4%
0.5% 0.2%
4.9%4.6%2.7% 2.8% 1.2%
-0.9%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Package Services Volume
-1.4%
3.3% 3.5%
-0.9%
1.1%
3.3%0.8%
-2.7%-3.5%
3.8%
7.8%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE
-4.1%-5.6%
-2.3%
-7.1%
-11.9%-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2007Q1 2007Q2 April May June
Total First Class Flat Volume versus SPLY: Growth Rates
FINANCIAL UPDATE Total First Class June 2007 Volume versus SPLY:
Growth Rates
-9.4%
-11.9%-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
Parcels Flats
FINANCIAL UPDATE
4.2%
-0.5%
0.0%
-7.2%
-12.2%-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%
2007Q1 2007Q2 April May June
Total Standard Flat Volume versus SPLY: Growth Rates
FINANCIAL UPDATE Total Standard Weight per Piece: Growth Rates
-0.7%
0.8%
1.8%2.4%
1.6%2.1%
3.5%
-1.1%
-3.3%
1.4%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
2007Q1 2007Q2 April May June
Letters Flats
FINANCIAL UPDATE Total Standard June 2007 Volume versus SPLY: Growth
Rates0.8%
-12.2%-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%
Letters Flats
FINANCIAL UPDATE Total Standard Rate Changes R2006-1
Letters FlatsRegular 4.3% 22.9%Nonprofit Regular1.8% 36.4%ECR 3.9% 7.4%Nonprofit ECR -3.4% 14.7%
FINANCIAL UPDATE Total First-Class Rate Changes R2006-1
Letters 5.2%Flats 17.2%Parcels 21.1%
FINANCIAL UPDATE
Total All Mail
Package Svc.PriorityExpress
PeriodicalsStandardFirst-Class
50.4B
283M192M
12M
2.1B24.9B22.5B
Qtr 4
-2.7%
-3.9%-10.1%-12.4%
-4.0%-2.8%-2.8%
SPLYChange
Quarter 4 Volume Outlook
FINANCIAL UPDATE Total Mail Volume per Workhour
150146145142137133129128123121119116116
0
20
40
60
80
100
120
140
160
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*FY
* YTD June22 Million New Delivery Points Added During This Period
FINANCIAL UPDATE Total Workhours – March 31 thru July 20
-1200-1000
-800
-600
-400
-200
0
Wk27 Wk28 Wk29 Wk30 Wk31 Wk32 Wk33 Wk34 Wk35 Wk36 Wk37 Wk38 Wk39 Wk40 Wk41 Wk42
Thou
sand
s
SPLY Variance
FINANCIAL UPDATE Total Overtime – March 31 thru July 20
-700
-600
-500
-400
-300
-200
-100
0
Wk27 Wk28 Wk29 Wk30 Wk31 Wk32 Wk33 Wk34 Wk35 Wk36 Wk37 Wk38 Wk39 Wk40 Wk41 Wk42
Thou
sand
s
SPLY Variance
FINANCIAL UPDATE Total Factor Productivity
Qtr 3 YTD Qtr 3
+1.4%Total Factor Productivity+1.8%
-1.2%Resources-2.1%
+0.3%Workload-0.2%
Qtr 3 YTD SPLY
+0.5%
+0.6%
+1.2%
FINANCIAL UPDATE FY 2007 Debt through Quarter 3 YTD
Beginning Debt $2.1Payment of Debt -$2.1 Ending Debt $0.0
($ Billions)
®
H. Glen WalkerChief Financial Officer &Executive Vice President
FINANCIAL UPDATEMailers’ Technical Advisory Committee
Meeting
August 1, 2007